You are supposed to tip on the cost of the food or service. You don't tip on the tax, they didn't serve you tax.
That being said, for food I always double the last two digits and round up to the nearest dollar. I aim for 20% but I can't be bothered with coins on a pricey restaurant meal. Alone at a diner I would be more accurate.
Can we just stop pretending that tipping is optional? Unless your service was outright horrible, you're stealing from the service provider if you tip less than 15%. They earn crap in wages and this is their pay. You don't have to like this system but it is the system. You're not going to fix the system by screwing the lowest paid people in the system. If you don't want to tip, eat at McDonalds and cut your own hair.
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